How To Do Wholesale Deals With REOs

How does this strategy work specifically?

I just started out marketing that I buy houses and I received a couple of replies: one from Wisconsin and another here in New York City. They are actually investors themselves and want to sell me properties that are REOs.

Most of these REOs need cash immediately, meaning no inspection period, I believe. If I have a buyer lined up, he would have to have the cash right away. Is there really no inspection period for REOs?

My other question is this: Are all REOS completed as a double/simultaneous closing? If so, how does this work? Who must be present at the closing?

I could answer but you would do us both a agood favor and search tampasteph, she posts here on occasion. She has an excellant book on REO’s only. I highly reccomend it. Herbster

Hi Herbster,

Thanks for replying.

How do I do a search by username? I’m new to this site.

So they are buying from the bank then selling to you and then you will sell to someone else. It better be an awesome deal!
REOs should have an inspection period just like any sale. If these investors tell you you can’t inspect it I would be highly suspicious. Maybe they are about to close so there’s no time left. Sucks for you. Unless you know the neighborhood intimately how could you know if its a deal without inspecting?
A double closing has nothing to do with it being an REO. It’s because someone else is wholesaling it from the bank to you. If you bought an REO directly from a bank, it would be a regular closing.

Hope this helps.

Use the search box at the top of the screen, its thats simple and will be good to use in the future. Herbster

They are buying from the bank and making a profit and selling to you. I suggest that you skip them and buy directly from the bank.